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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (May 15, 2014)

May 15, 2014, Thursday, 05:51 GMT | 00:51 EST | 09:21 IST | 11:51 SGT
Contributed by Angel Broking


Base Metals

Base metals on the LME apart from Nickel traded on a positive note yesterday taking cues from favorable inflation data from the US. Also, decline in inventories along with weakness in the DX supported gains.

However, escalating tensions between Russia and Ukraine coupled with unfavorable economic data from UK and Euro Zone exerted downside pressure in prices.

Nickel prices plunged to the lowest levels in 31 months as investors deemed the rally overdone.

MCX base metals traded higher yesterday in line with international markets.


Copper

LME Copper prices jumped by 0.8 percent yesterday on the back of rise in inflation data from the US thereby pointing towards an improving economic scenario. Also, decline in LME inventories by 2.7 percent to 197,475 tonnes along with weakness in the DX supported gains.

However, sharp upside was capped owing to mixed global market sentiments on the back of Russia Ukraine tensions. Also, weak economic data from Euro Zone and UK acted as negative factors. The red metal closed at $6895/tonne on Wednesday.

MCX Copper prices rose by 0.8 percent and touched an intra-day high of Rs.420.1/kg before closing at Rs.418.1/kg in the last trading session.


Outlook

We expect LME Copper prices to trade on a mixed note today on the back of estimates of positive GDP data from Euro Zone that will support gains in the earlier part of trade.

While on the other hand, expectations of mixed economic data from the US in the evening session will exert downside pressure on prices. Also, strength in the DX coupled with weak global market sentiments will act as a negative factor.

In the Indian markets, Rupee appreciation will keep a check on gains in prices.

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